Related Party Transactions

12 Months Ended

Mar. 31, 2017

NOTE 7 – Related Party Transactions

An affiliate of the General Partner has a .01% interest as a special limited partner in the remaining subsidiary partnership.

Other Related Party Expenses

The costs incurred to related parties from operations for the years ended March 31, 2017 and 2016 were as follows:


	Year Ended
	March 31,
	2017		2016

Partnership management fees (a)	$	67,000	$	67,000
Expense reimbursement (b)		70,943		62,576
Total general and administrative - General Partner	$	137,943	$	129,576

The costs incurred to related parties from discontinued operations for the years ended March 31, 2017 and 2016 were as follows:


	Years Ended March 31,
	2017		2016
Local administrative fee (c)	$	5,000	$	5,000

Total general and administrative-General Partner		5,000		5,000

Property management fees incurred to affiliates of the subsidiary partnerships' general partners		55,378		57,584

Total general and administrative-related parties	$	60,378	$	62,584

(a)

The General Partner is entitled to receive a partnership management fee, after payment of all Partnership expenses, which together with the annual local administrative fees will not exceed a maximum of 0.5% per annum of invested assets (as defined in the Partnership Agreement), for administering the affairs of the Partnership. Subject to the foregoing limitation, the partnership management fee will be determined by the General Partner in its sole discretion based upon its review of the Partnership’s investments. Unpaid partnership management fees for any year will be accrued without interest and will be payable from working capital reserves or to the extent of available funds after the Partnership has made distributions to the limited partners of sale or refinancing proceeds equal to their original capital contributions plus a 10% priority return thereon (to the extent not theretofore paid out of cash flow). Partnership management fees owed to the General Partner amounting to approximately $1,842,000 and $1,847,000 were accrued and unpaid as of March 31, 2017 and 2016, respectively, and are included in the line item Due to general partners and affiliates in the consolidated balance sheets. Current year partnership management fees may be paid out of operating reserves or refinancing and sales proceeds. As such, the General Partner cannot demand payment of the deferred fees except as noted above.

(b)

The Partnership reimburses the General Partner and its affiliates for actual Partnership operating expenses incurred by the General Partner and its affiliates on the Partnership’s behalf. The amount of reimbursement from the Partnership is limited by the provisions of the Partnership Agreement. Another affiliate of the General Partner performs asset monitoring for the Partnership. These services include site visits and evaluations of the subsidiary partnerships’ performance. Expense reimbursements and asset monitoring fees owed to the General Partner and its affiliates amounting to approximately $37,000 and $0 were accrued and unpaid as of March 31, 2017 and 2016, respectively. The General Partner does not intend to demand payment of the deferred payables beyond the Partnership’s ability to pay them. The Partnership anticipates that these will be paid, if at all, from working capital reserves or future sales proceeds.

(c)

Independence SLP L.P., a special limited partner of the subsidiary partnerships, is entitled to receive a local administrative fee of up to $5,000 per year from the remaining subsidiary partnership. Local administrative fees owed to Independence SLP L.P. amounting to approximately $100,000 and $95,000 were accrued and unpaid as of March 31, 2017 and 2016, respectively. These fees have been deferred in certain cases and the Partnership anticipates that they will be paid, if at all, from working capital reserves or future sales proceeds.

Due to Local General Partners and Affiliates

Due to local general partners and affiliates at March 31, 2017 and 2016 consists of the following:


	March 31,		March 31,
	2017		2016

Construction costs payable	$	120,000	$	120,000
Management and other operating advances		4,703		5,699
	$	124,703	$	125,699

INDEPENDENCE TAX CREDIT PLUS L P II 10-K